Consolidation in the video game industry is happening. If Sony could lose a partner like Activision Blizzard, they can absolutely lose major partners like Ubisoft, Sega, EA, etc, over the course of the generation. It won't just be Microsoft looking at big publishers either, Tencent, Amazon, Google, the doors have been blasted open. Sony still heavily relies on third party content to fill out the year and the gaps between their heavy hitters. There is a very real possibility this will diminish and they will need to lean heavily on their first party. Will that be enough to sustain the Playstation platform? I don't know.
But at this point in time, Sony are far behind Microsoft in terms of overall development teams, and at a major disadvantage with Call of Duty being an annual release. If all Sony does is grab smaller studios like Ember Labs, while Microsoft grabs another publisher like Ubisoft, they won't be able to stop Microsoft from disrupting them, and will be bleeding market share by losing tons of content while the competitors platform becomes a lot more attractive.
All that said, Sony would've heard about this deal back in November, and I don't think they are taking it lightly behind closed doors. If the recent comments of the CEO are anything to go by, Sony will be shopping for IP, and there is one industry they can get it from, which also helps one of their most profitable businesses remain competitive.
Yeah, that doesn't really explain how or why they would drop out of the hardware space. I don't follow your logic.
I mean put it this way, even in the unlikely scenario they lost say 60% of their marketshare (which would be absolutely huge), you think they're going to stop making Playstations?
Sony have likely known about consolidation efforts across the industry since the start of this generation - I've been wondering why they've been massively pushing into multiplayer with new and existing IP. This is the answer. If they can no longer rely on 3rd parties to fill the multiplayer space, they have to do it themselves.